Market cheers GDP data, Sensex at 6-mth high, zooms 241 points

Mumbai, Mar 1 (PTI) Robust GDP data for the December
quarter provided the markets a big relief as the Sensex today
rallied over 241 points to end at about a six-month high of
28,985 amid favourable global cues.
The impact was such that even the broader NSE Nifty took
back the 8,900-mark.
The Central Statistic Office yesterday showed that
India's economy expanded by 7 per cent in the third quarter,
belying all fears of the note ban puncturing economic
activity.
The Sensex took off on a positive note and went past the
key 29,000-mark to touch a high of 29,029.17 before settling
up by 241.17 points, or 0.84 per cent, at 28,984.49, a level
last seen on September 8 last year when it had closed at
29,045.28.
The gauge had lost 149.65 points in the previous two
sessions.
The NSE Nifty also moved up 66.20 points, or 0.75 per
cent, to 8,945.80 after shuttling between 8,960.80 and
8,898.60.
Sentiment also got a lift after a monthly survey showed
that India's manufacturing sector grew for the second straight
month in February.
Meanwhile, Moody's Investors Service said demonetisation
will be credit positive for India as it is likely to reduce
tax avoidance and corruption.
Both the key indices have rallied by almost 9 per cent in
the past two months, largely on the back of a growth-oriented
Budget, better-than-expected earnings from bluechip companies
and strong global cues.
The government pegged GDP growth at a higher-than-expected
7.1 per cent for 2016-17 despite the cash blues, with
manufacturing and agriculture doing exceptionally well, which
in turn made India retain the tag of the world's fastest
growing large economy.
The GDP projection for the fiscal at 7.1 per cent in the
second advance estimate is the same as the first one put out
by the CSO in January.
Better Chinese factory readings and a higher opening in
Europe amid US President Donald Trump's congressional speech
too influenced mood, which led to a higher closing in Asia.
In Asia, Hong Kong's Hang Seng rose 0.15 per cent and
Japan's Nikkei up 1.44 per cent while Shanghai Composite
Index was up 0.16 per cent.
In Europe, London's FTSE was up 0.61 per cent, Paris'
CAC 40 1.11 per cent and Frankfurt's DAX 30 1.14 per cent in
their early deals.
Stocks of automobile companies led by MandM, Hero Motocorp
and Bajaj Auto were in limelight and gained up to 3.13 per
cent largely on the back of encouraging sales numbers for
February.
Other prominent gainers included Tata Steel, Dr Reddy's,
ITC Ltd, Sun Pharma, HDFC Ltd, Axis Bank, Infosys, SBI,
Hindustan Unilever, ICICI Bank, Power Grid and Cipla,
rising by up to 3.66 per cent.
Out of the 30-share Sensex pack, 21 ended higher while 9
led by GAIL, NTPC, Tata Motors, Bharti Airtel, RIL, Coal
India, Lupin and Wipro ended lower, which limited the gains.
The BSE realty index gained the most by surging 3.46 per
cent, followed by metal 1.91 per cent, FMCG 1.30 per cent,
bank 0.96 per cent and healthcare 0.87 per cent.
In step with the trend, the small-cap index rose 0.45 per
cent and mid-cap 0.13 per cent.
Meanwhile, foreign investors bought shares worth Rs
1,146.23 crore yesterday, showed provisional data.